All Forum Posts by: Stephen Chatto

I would think a state contract would be a good starting point.  

I would think that you need an inspection period.

I would think that you need the contract to be assignable.

I would think that you need to disclose you are not going to live there, but rather profit.

I would think you should get a GOOD Real Estate Lawyer.

Not legal advice...   Just off the top of my head.

Can your Realtor give you a copy of the state approved lease?

Can you be more specific?  That is a very broad question.

Inheritance - Lance @ US Lead Lists

Vacant - Find Motivated Sellers Now

Eviction - Depends on your local Stuffs

Probate - Mark Van Dyke at Probate Goldmine

Bankruptcy - Pacer

And then of course Listsource

Hope that helps.

If you can afford it...  its a start.  Absentee owners get hit hard, so don't expect a huge response.  I like to hit my list quarterly.  

500 is to few to get a good idea of if it's working.   

How many calls have you got from the mailing?

Please clarify what you are asking?   I am not seeing it clearly :)

Go out and learn how to use other peoples money :)

Because once that 100k is spent...  then what?  

If you REALLY want to spend the money.   You can buy 2 houses in my market and rent them out for a pretty darn good return. 

You could probably buy 4 if you want to venture into certain areas.  

:)

Good Luck...   

 Doing what you say is Integrity.   Having integrity as a wholesaler or an agent is HUGE.   It keeps you in business in the long term.  Some wholesalers over promise to get a deal.  Some agents over promise to get a listing.  That's not right.    

It's not wholesalers vs agents, In fact I love to work with good agents.  

It's about telling the truth.   It's about being honest with people.   It's about providing value. 

 Richard.   

Wholesalers only deal with 5% or less of the sellers out there.   95% of them are best served by a good agent, and I tell them that ALL THE TIME.   In fact if I think they are better to list it I will bring an agent with me.   On this deal the agent told him he could easily sell it for 220k AS-IS.  The agent I brought is a good agent also.   A broker in fact that is a owner in the company located in the same town.   The Agent gave him all the comps and data he could ever want.   He still wanted an offer from me.   I offered him 185k.  He decided to take my offer, and we are actually closing ahead of schedule.  I had no knowledge that he did not have.  We were both told by the experienced agent that he felt it would sell for 220k AS-IS.   Yet he accepted my offer or 185k.  I was able to offer a purchase and sale contract.   The Agent was not willing to offer that.  

On another deal we told them that we are going to turn around and and sell your house quickly for probably 250k AS-IS.  We got it under contract for under 200k  Why did she go with us?  Because she did not want to show the property.   She didn't want people coming through her property.  She needed a VERY flexible closing date.  Guess what.   We closed 6 months later on the date she wanted.  We had 1 hour for inspections within the 1st 10 days of the contract and we had the contract SOLD.  Again.   We told her we are going to turn around and sell it quickly.  We told her we would turn around and sell it for a big profit. We told her we needed to get a few people through.  What knowledge did I have that she didn't?   None.  She gave up selling price in exchange for a flexible closing date and allowing me access only twice in 6 months.    

Every deal is different and every seller has different needs.  A listing agreement does not work for the small percentage of sellers I help.  

As far as your concerns about repairs.  It does make a difference.  I have talked to enough sellers who said they tried to list their house and the agent wanted them to make too many repairs that they could not afford.   There are good agents and bad agents.   There are good wholesalers and bad ones.   

Some people look out for others and create win win situations.   Others do what they can to make a quick buck.  

When I wholesale a deal I provide VALUE.   I know that I put A LOT of time and effort into what I do.  I market consistently - I prospect regularly - I network regularly - I am constantly studying - I am building a business that provides value and strive every day to be the best.   I believe what I offer to sellers is fair, I believe that I take care of the sellers I work with, I believe that I should get paid for the work and effort that I put in.  

I can not agree that listing a house is the universal answer. In fact a deal I have under contract now already expired on the MLS twice. Why couldn't that agent sell it? It has already had "Maximum" exposure. There is more to selling a deal then putting on the MLS. This is a low price point property, and I am fairly confident that agent didn't do much more than list the house on the MLS. Sounds like they did a great job representing their seller. There were not even pictures of the place on the MLS. Just a bare bones listing.

 John Thedford - As an unlicensed person who sells contracts as a part of my investment business there is nothing I could provide that a licensed agent could not.  I have noticed that not a lot of agents are willing to deal with these properties unless they are acting as a principle in the transaction and specialize in distressed situations.    

Many times these sellers want to be done with the house and would rather have a purchase and sale contract that a listing agreement.  Either an agent or an unlicensed person can give them the Purchase and Sale agreement.  Only the agent can list it.  While giving an opportunity to a great agent to list the property might get the person the highest value for their home in a reasonable time, that is not always what the seller wants.  On the other hand if an experienced investor OR agent get it under a purchase and sale agreement, the seller is getting what they want.  They have a sale price and a closing date. That contract has value and can be sold.  

In either situation it comes down to the experience of the unlicensed investor or the agent.  An un-experienced investor OR agent can make mistakes that leave the property owner stuck with the property for much longer than expected.

I do have a problem with someone that has no Idea what they are doing getting a property under contract at a stupid price and wasting someones time.  Everyone needs to get started somewhere, but experience and knowing the market goes a long way.  

As an investor I create deals. I get properties under contract at great terms, and that has value. As a buyer I have rights. One of my rights unless I give it away is to assign the contract. I can purchase the house. I can also JV with another investor on the deal.

Over the past year I got three contracts that I had intended to assign and was unsuccessful in finding a buyer for the contract.  When I get a property under contract, its at a price that I would buy it.  Guess what.   I purchased all three of those houses ANYWAY, On time and as promised.  As a wholesaler my options are open.   Can an agent go back and buy their own listing?  (I don't know, I am not an Agent)

Does every deal go through?   No.   Most of them do.  Not closing a deal is rare for me, and secondary to something that was discovered during the inspection.  There are lot of listed properties that go expired with no buyer on a regular bases.  

So back to the question.   In general.   A wholesaler provides a Purchase and Sale Agreement, while most agents are only willing to provide a listing agreement.   The seller wants the house under contract, not listed.   Agents can wholesale also.  Agents can invest also.  

Wholesalers that are good know most if not all the local cash buyers and the types of deals they are looking for.   Unless an agent has intentionally made that part of their business they have not.  

My thoughts at least.